De Martini PNNL-NREL International Workshop Feb 19, 2014

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Information about De Martini PNNL-NREL International Workshop Feb 19, 2014

Published on February 25, 2014

Author: pjdemar



Presentation to the PNNL-NREL International Energy Systems Integration Workshop held Feb. 19, 2014 in Wash., DC

CALIFORNIA INSTITUTE OF TECHNOLOGY Decentralized Energy Paradigms International Energy Systems Integration Workshop PNNL-NREL Paul De Martini 02.19.14

Bi-directional: 2007-2020 Growth in customer and merchant DER leads to inadvertent and planned bi-directional power flows driving circuit design changes, new grid components and control systems 2 2

Operational Evolution: 1978-2001 Transactive Energy: 2020+ DER at scale will likely lead to multi-party transactions and the creation of local balancing & distributed markets to integrate customer DER 3 3

Responsive Distributed Energy Resource Values 4

Multiple DER Constituents Market & control systems must be able to reconcile multi-party objectives & constraints related to the same distributed resource Objectives & Goals Decision Criteria & Processes Constraints Bulk Power System Energy Financial Services Distribution Operations Customer Energy Provider Energy Device Firms Energy Related Services Value Perception Economic Value Willingness & Ability 5

Evolving Energy Ecosystem Convergence of Four Key Networks 6

Challenges for Distributed Energy at Scale Failure to address properly will reduce stability for both distribution and bulk power  Spatial & Time Coordination  Redefine Roles and Interaction between Transmission and Distribution Operations  Redefine integration and coordination of controls and protection  Reassess “Market” Structures to ensure alignment of economic signals with system operations (broad use of term not just ISOs, but also bilateral and tariffs)  Economic & Robustness Optimization  Full system trade-off analysis  Complexity vs. Simplicity  Risk Based Methods  Coordination Needed Bet. Bulk Power, Distribution & Customers  Policy & Regulation  Infrastructure Planning & Investment  Information Exchange 7

Spatial & Temporal Coordination Current policy, markets and operational trends are converging spatial and time dimensions more fully - while at the same time more tightly coupling across each dimension. Regional State LSE Distribution Requires: • • • • • Planning Alignment Engineering/Design Alignment Operational Alignment Control Alignment Protection Alignment Customer 8

Economic & Robustness Optimization There is a fundamental trade-off between economic efficiency and robustness – we’re now also trying to resolve this system problem in a larger spatial and time context. Economic Optimization High What are the range of options? And what is an acceptable set of solutions? Low Low Operational Robustness High 9

Coordination Across Domains We are quickly reaching the limits of our ability to assume away the difficult issues. And, smoothing issues thru large numbers no longer masks the underlying problems  Policy & Regulation  Energy Policy & Operational Reality – Systems View  Coordination bet FERC & State/Local Jurisdictions  NERC Reliability and Distribution (State/Local) Roles  Infrastructure Planning & Investment  Redefine Integrated Resource Planning to more completely incorporate distribution and customer DER  Expand transmission planning to incorporate local distribution considerations  Adapt analogous transmission planning methods to local area distribution planning  Information Exchange  Planning information (Engineering, Benefit-Cost, Regulatory)  “Market” Information (Pricing & Settlement)  Operational Information (Situational Awareness, Decision Support & Control Feedback) 10

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